Mongolia’s White Gold Project: Revitalizing Cashmere, Wool, and Leather Industries

Rooted in centuries of nomadic tradition, Mongolia’s White Gold project breathes new life into the country’s iconic materials—cashmere, wool, and leather—by turning heritage into high-value craftsmanship. It’s a bold step toward preserving culture while powering sustainable growth.

The “White Gold” project is a national initiative launched by the Government of Mongolia to transform the country’s livestock-based industries—particularly wool, cashmere, and leather—into high-value, sustainable economic drivers. Often referred to as Mongolia’s “white gold,” cashmere is one of the nation’s most prized exports, alongside sheep wool and hides, which collectively support over 190,000 herder households.

Goals and Scope (2024–2028)

• Boost Value-Added Production: Shift from raw exports to processed goods by increasing domestic capacity for spinning, weaving, and finishing.

• Expand Exports: Target export revenues of USD 690 million from cashmere, USD 119 million from wool, and USD 22.4 million from leather.

• Job Creation: Generate over 8,000 new jobs across the three sectors.

• Sustainable Practices: Promote climate-resilient production, traceability, and eco-friendly processing methods.

Key Targets by 2028

Sector	Processing Goal	Production Value	Export Target	Jobs Created
Cashmere	40% fully processed	MNT 2.3 trillion	USD 690 million	3,000+
Wool	55% fully processed	MNT 670 billion	USD 119 million	2,200+
Leather/Hides	50% deep processed	MNT 90 billion	USD 22.4 million	3,000+

Mongolia produces annually:

• 🐐 10,000 tons of goat cashmere

• 🐑 37,000 tons of sheep wool

• 🐫 2,000 tons of camel wool

• 🐂 400 tons of yak wool

• 🧥 18 million pieces of leather and hides

Financing and Support

• The government has approved MNT 788.9 billion in financing, including:

  • MNT 300 billion for working capital

  • MNT 488.9 billion for investment loans

  • MNT 66.4 billion in interest subsidies

• Agreements were signed with 10 major Mongolian banks to facilitate access to credit for producers and processors.

Strategic Importance

• Economic Diversification: Reduces dependence on mining by strengthening traditional sectors.

• Cultural Preservation: Supports herder livelihoods and promotes Mongolia’s identity through its iconic textiles.

• Global Competitiveness: Aims to position Mongolia as a premium supplier of ethically sourced and sustainably produced cashmere and wool.